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TORONTO, ONTARIO--(Marketwired - Oct. 23, 2014) - McEwen Mining Inc. MUXMUX is pleased to announce production results as of Sept. 30, 2014. For the quarter, 30,642 gold eq. oz(1)(2) and for the nine months 93,987 gold eq. oz were produced. Production guidance for the year remains unchanged at 135,000-140,000 gold eq. oz. Production is expected to increase in Q4, due to higher grades and processing capacity at El Gallo 1 and higher grades at San Jose. Production costs will be reported in November 2014 with Q3 financials.
McEwen Mining has two sources of gold and silver production, the El Gallo 1 mine located in Sinaloa, Mexico and the San Jose mine located in Santa Cruz, Argentina. The San Jose mine is 49% owned by McEwen Mining and 51% owned and operated by Hochschild Mining.
Corporate Operating Results
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Year to Date
Q3 2014 Q2 2014 Q3 2013 2014
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San Jose - 49%(i)
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Gold produced (oz) 11,278 10,750 12,549 32,795
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Silver produced (oz) 751,995 737,001 827,726 2,209,826
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Gold equivalent produced
(oz)(2)(3) 23,811 23,033 26,344 69,625
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El Gallo 1
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Gold produced (oz) 6,748 8,113 7,934 24,155
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Silver produced (oz) 4,980 3,275 4,868 12,450
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Gold equivalent produced
(oz)(2)(3) 6,831 8,167 8,015 24,362
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Total Production
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Gold produced (oz) 18,026 18,863 20,483 56,950
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Silver produced (oz) 756,975 740,276 832,594 2,222,276
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Gold equivalent produced
(oz)(2)(3) 30,642 31,200 34,359 93,987
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(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.
1. Gold eq oz = Gold equivalent ounces
2. The Company calculates gold equivalent ounces at a Ag:Au ratio of 60:1
3. For purpose of comparison all gold equivalent ounces in this release have
been calculated using a ratio of 60:1
El Gallo 1 Mine, Mexico (100%)
In Q3 2014, the El Gallo 1 mine produced 6,831 gold eq. oz. This is 16% lower than Q2 2014 (see table below for comparatives). This decrease was due to lower ore production, the result of severe rainfall that resulted in lower haulage rates and crusher throughput.
In order to meet our 2014 production forecast of 37,500 gold eq. oz, our mining contractor has acquired additional trucks, a second ramp has been constructed to access more mining faces, extra water pumps have been installed and a portable crusher is in place to ensure additional crushing capacity. As well, mining of deeper, higher-grade ore has commenced.
These initiatives are already paying off. Month-to-date, we have crushed and loaded approximately 4,300 ounces to the leach pad that are expected to be reflected in our Q4 production. This is a solid start to producing the 13,200 gold eq. oz required in Q4 in order to meet our full year guidance.
El Gallo 1 Mine Operating Results
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Q3 2014 Q2 2014 Q3 2013 Year to Date 2014
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Ore production (tonnes) 212,534 368,223 289,382 940,159
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Average grade gold (gpt) 1.12 1.10 1.31 1.13
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Gold produced (oz) 6,748 8,113 7,934 24,155
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Silver produced (oz) 4,980 3,275 4,868 12,450
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Gold equivalent produced
(oz)(3) 6,831 8,167 8,015 24,362
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San Jose Mine, Argentina (49%)
McEwen Mining's attributable production from the San Jose mine during Q3 2014 was 23,811 gold eq. oz. This is 3% higher than Q2 2014 (see table below for comparatives). Production in Q3 was in-line with the mine plan, but shows a decrease year-over-year due to exceptionally high gold and silver grades produced in Q3 2013. Production increased quarter-over-quarter due to slightly higher gold grades and recoveries. McEwen Mining's share of production from San Jose in 2014 is forecasted to be 97,500 gold eq. oz with approximately 27,900 gold eq. being produced in Q4.
San Jose Mine Operating Results
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Year to Date
San Jose - 100%(i) Q3 2014 Q2 2014 Q3 2013 2014
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Ore production (tonnes) 141,666 142,074 131,592 418,329
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Average grade gold (gpt) 5.66 5.45 6.59 5.62
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Average head silver (gpt) 388 378 446 386
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Average gold recovery (%) 89.2 87.6 91.9 88.5
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Average silver recovery (%) 86.9 87.1 89.5 87.0
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Gold produced (oz) 23,016 21,938 25,610 66,928
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Silver produced (oz) 1,534,683 1,504,084 1,689,237 4,509,848
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Gold equivalent produced
(oz)(3) 48,594 47,006 53,764 142,092
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McEwen Mining - 49% Share
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Gold produced (oz) 11,278 10,750 12,549 32,795
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Silver produced (oz) 751,995 737,001 827,726 2,209,826
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Gold equivalent1 produced
(oz)(3) 23,811 23,033 26,344 69,625
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(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.
About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by creating a profitable gold producer focused in the Americas. McEwen Mining's principal assets consist of the San Jose mine in Santa Cruz, Argentina (49% interest); the El Gallo complex in Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los Azules project in San Juan, Argentina. McEwen Mining has 304.7 million shares fully diluted at October 22, 2014. Rob McEwen, Chairman, and Chief Owner, owns 25% of the shares of the Company.
RELIABILITY OF INFORMATION
Minera Santa Cruz S.A. ("MSC"), the owner of the San Jose mine, is responsible for and has supplied to the Company all reported results from the San Jose mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Technical Information
The technical contents of this news release has been reviewed and approved by William Faust PE, Chief Operating Officer and a Qualified Person as defined by Canadian Securities Administrator National Instrument 43-101 "Standards of Disclosure for Mineral Projects".
There are significant risks and uncertainty associated with McEwen Mining's production base, the El Gallo 1 mine and the San Jose mine which is operated by our joint venture partner, Hochschild Mining. If you are uncomfortable with the risks associated with the mining industry don't waste any more time considering an investment in our company.
Caution Concerning Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by those laws. Forward-looking statements cover everything relating to the future. Such forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties (as disclosed in McEwen Mining's filings with the SEC, under the caption "Risk Factors"). McEwen Mining does not undertake any obligation to release publicly revisions to any forward-looking statement, except as may be required under applicable securities laws. Any reliance on forward-looking statements by any investor is at their own risk.
The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.
FOR FURTHER INFORMATION PLEASE CONTACT:
McEwen Mining Inc.
Sheena Scotland
Director, Investor Relations
(647) 258-0395 ext 410 Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
Facebook: www.facebook.com/mcewenrob
Twitter: www.twitter.com/mcewenmining
McEwen Mining Inc.
Mailing Address
150 King St W, Suite 2800
P.O. Box 24
Toronto, ON M5H 1J9
info@mcewenmining.com
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